China’s Xi Jinping sends ‘warning signal’ to the wealthy as he opens new front in ‘common prosperity’ push
- President Xi Jinping’s report to the 20th party congress signalled more robust regulation to narrow the wealth gap
- Analysts expect a wider array of taxes to support poor families and bolster the social safety net, while wealthy Chinese could face a rocky road ahead
Just days after President Xi Jinping announced tighter oversight of the way wealth is accumulated in China, speculation is growing about who might be targeted and how, with private business confidence still shaky following Beijing’s crackdown on the tech sector.
“We will keep income distribution and the means of accumulating wealth well-regulated,” Xi said, according to the English version of his report. “We will protect lawful income, adjust excessive income and prohibit illicit income.”
“Common prosperity” is not a new policy, but Xi’s comments were the first time China’s top leadership has spoken about managing the means of wealth accumulation.
Usually such concise language delivered at a party congress is a sign of more concrete policies to come.
This should be a warning signal for the wealthy
